Longevity Complicates Planning for Women
By JILIAN MINCER A DOW JONES NEWSWIRES COLUMN
"Women live longer than men, but they don't necessarily work longer," says Anna Rappaport, co-author of a recent report from the Society of Actuaries on "The Impact of Retirement Risk on Women."
"There is a lack of awareness for many couples of what happens when one dies and that the surviving spouse could be worse off," Rappaport says.
A recent study by the society found that there are gaps in planning for women's longevity. While half of women who reach 65 will live beyond 85, 92% of female retirees and 89% of female pre-retirees "do not plan far enough in the future to cover this 20 year period," it says.
Advisers don't typically set aside a separate pot of money for women to use as they age, but more are trying to raise awareness about the special circumstances they face: Women not only live longer, but face an average lifetime cost of long-term health-care services of about $82,000 compared with $29,000 for men. (That is in 2000 dollars.) Also, "they are much less likely to have someone to take care of them because they are more likely to not have a spouse," Rappaport says.
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